Employee Retention is Critical in a Tight Labor Market

Employee RententionAs the local economy has recovered from the recent great recession years, employment numbers have also rebounded toward the peak levels of early 2007.  Recent employment stats show that in the three-county area, employment numbers are within 1% of peak levels in 2007.  At the same time, the area unemployment rate has dropped significantly from its peak rate in early 2010 of 12.7%, to less than 5% today— lower than both the national and Florida state unemployment rates.

Of course, this is great news for the labor force; jobs are easier to obtain, with more open positions to choose from.  Although average wages have not necessarily kept pace, those too should start to increase in the tighter labor market.

For local businesses, the positive employment picture creates more challenge in hiring and retaining good employees.   Trustworthy, hard-working, dedicated employees are the life-line of a growing business.  However, once you’ve hired great employees, retention is critical; turnover is costly in both time and productivity.   Re-hiring and re-training employees consumes valuable resources of the business.

Attached is an article recently published in the Wall Street Journal suggesting tactics to reduce employee turnover and retain good employees.  In short, here are some tactics to lower employee turnover:

  •  Offer a competitive benefits package, including health and life insurance and a retirement plan.  Include some unique perks tailored to your workforce.
  • Provide employees financial incentives such as raises, bonuses and stock options.
  • Consider hiring a human resources manager if your company is nearing 100 employees.
  • Make sure employees know what’s expected of them and how they can grow within your company.

Read the Wall Street Journal Article

Suncoast CFO Solutions provides an affordable solution for smaller businesses operating without the role of a CFO by offering part-time CFO services tailored to the needs of the business.  To learn how we can add value to your business, contact us for a free consultation or, for a nominal fee, an in-depth Business Analysis of your business.